Sound Off: Summer of the big surprise

In today’s column, I discuss another piece of complexity that consumers now face in our competitive electricity market. Variable-rate plans looked pretty good a few months ago, with natural gas prices holding steady. But many customers, such as Ben Dempsey, have found the rates rising steeply heading into the summer.

Even though they understood their rates could rise, and even though they realized that electric rates in Texas are tied to natural gas prices, they didn’t anticipate how supply and demand factors would impact rates.

In the summer, when usage surges, generators have to turn to older, more expensive power plants, known as “peaking plants,” to meet the increased demand.

As a result, many customers on variable rate plans may be in for a big surprise.

Are the various plans offered — 59 plans from 23 companies in Houston — too overwhelming for consumers trying to choose among them? Are variable-rate plans worth the risk?